In the short term, the AUD/USD has a mixed outlook – UOB

UOB Group FX Strategists Peter Chia and Quek Ser Leang said that now, amidst the ongoing mixed economic outlook, the AUD/USD currency pair is watched in and around the 0.7030-0.7210 level.

May 06, 2022 - 12:58 PM 265 views

In the short term, the AUD/USD has a mixed outlook – UOB

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© In the short term, the AUD/USD has a mixed outlook – UOB

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UOB Group FX Strategists Peter Chia and Quek Ser Leang said that now, amidst the ongoing mixed economic outlook, the AUD/USD currency pair is watched in and around the 0.7030-0.7210 level.

Important Quotes

We said on the previous day, "The rapid and steep gain in the AUD has an opportunity to extend to 0.7270 before the possibility of a pullback increases." The Australian dollar soared to 0.7267 before plummeting to a low of 0.7079. The fast drop appears to be exaggerated, and the Australian dollar is unlikely to go much lower. The AUD is expected to move between 0.7060 and 0.7160 today.

On the previous day, we noted (05 May, spot at 0.7245) that the recent weak phase had abruptly ended, and we maintained our position that "the outsized rebound has potential to extend but is unlikely to exceed 0.7305." We weren't expecting the 1.95 percent drop in the Australian dollar (NY close of 0.7114). A mixed view has resulted from the dramatic but short-lived movements. The AUD could trade between 0.7030 and 0.7210 from here. A persistent decrease in the AUD is unlikely unless it closes below 0.7030.

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